Poverty Decomposition by Regression: An Application to Tanzania
UNU-WIDER Working Paper 2015/102
34 Pages Posted: 30 Aug 2017
Date Written: October 1, 2015
We develop a poverty decomposition method that is based on a consumption regression model. Because this method uses an integral of the partial derivatives of a poverty measure with respect to time, the resulting poverty decomposition satisfies time-reversion consistency and sub-period additivity. Unlike the existing poverty decomposition methods, it allows us to ascribe the observed change in poverty to various covariates of interest collected at a disaggregate level. This method is applied to two datasets from Tanzania to assess, among others, the short- and long-term impacts of infrastructure and market access on poverty.
Keywords: FGT measure, Watts measure, market access, infrastructure
JEL Classification: I32, O10
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